Before explain about Terra Price prediction, we should note Terra has created a next-generation Blockchain payment network for the growing Asian e-commerce market, which seeks to improve the performance of payment service providers and increase value for customers. To realize this vision, Terra helped build an e-commerce alliance with 15 original partners and representing $ 25 billion in Gross Merchandise Value (GMV).
Terra is a new generation blockchain payment network that integrates with stable coins and uses its own LUNA coins. Terra is a reliable and programmable blockchain e-commerce platform. It offers fixed Fiat-pegged chains for greater stability when making cross-border payments. Terra relies on its utility and cryptocurrency, LUNA, as well as several other fixed currencies that rely on many of the world’s top Fiat currencies – including TerraUSD (UST). Using Stablecoin, the Terra crypto ecosystem offers low-cost, instant settlement and frictionless cross-border exchanges to secure retail transactions.
Digital payment systems are essential to the global economy and have been in use for decades. However, most of them, are evolving slowly, and today’s payment solutions are local-limit, relying on intermediaries built to work with older infrastructure. The Asian digital payment industry in particular is very busy. It uses ApplePay, SamsungPay, KakaoPay, Alipay, and more than 45 others. Undifferentiated Myriad products work without a specific revenue model or core product value, resulting in increased user acquisition and retention costs.
The Terra is built using Cosmos China blockchain technology and is designed to challenge current retail payment apps. As a comprehensive end-to-end payment solution, Terra manages to bypass the entire existing fragmented payment infrastructure. This model allows Terra technology to potentially save hundreds of millions of dollars a year in payment service providers. For users, the Terra sets itself apart from the competition with discounted transaction fees – it only costs 0.5 to 2 %, while 2.5 to 3% is the industry standard.
Terra Partners use Terra Stablecoins to enable the use of Terra’s network for retail payment services. Stablecoins are intelligent encrypted versions of Fiat’s global currency contract designed to reduce common fluctuations associated with digital assets. So far, Terra has launched TerraUSD (UST), TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraEUR, and the International Monetary Fund TerraSDR for use in a wide range of global markets. Terra stablecoin offers seamless cross-border value exchanges and instant swaps between one another while using instant settlement and very little fees to use by anyone anywhere.
How Terra support stablecoins?
Terra stablecoins ensure integrated transactions and stability of Fiat currencies. Also, Terra cryptocurrency uses its native LUNA currency as a useful and governing token to restore collateral mechanisms that stabilize Terra network stablecoins prices. This means that LUNA coins have an elastic source that fluctuates according to the needs of the Terra collateral mechanism. In addition, LUNA is used as part of the Terra Network Validator through the Proof-of-Stake (PoS) Consensus Mechanism.
Many Terra business partners and customers have access to the Terra Blockchain network directly through Terra’s dedicated Terra Station wallet. Terra Station supports its LUNA utility tokens and all Terra stablecoin, as well as Anchor Protector (ANC) and Mirror Protocol (MIR), and Terra Station also supports all other Terra ecosystem assets. Terra Wallet also allows users to interact with other applications with Terra-based decentralized applications (dApps) built into the operating system to swap tokens, delegate LUNAs to validators, and manage financial resources.
A special set of open application programming interfaces (APIs) allows merchants to set up on-site payment with Terra Station for instant purchases and settlement and is designed to be both a Mobile wallet and a web-based wallet.
ANC & MIR
The Terra protocol is designed to support all Fiat-based stablecoin such as TerraUSD, TerraKRW, TerraEUR, and TerraSDR. The system works to maintain How the platform handles inflation and deflation? using specialized algorithm spending and Stablecoin usage data collected directly from the Terra blockchain – and the key is LUNA equilibrium.
As the volume of transactions in Terra’s network of payment service providers increases, the general demand for TerraUSD (and other Stablecoin such as TerraJPY, TerraGBP, TerraCNY) also increases. It means that the platform will have to issue new LUNA coins to Maintain price stability. Conversely, when the volume of Terra Network Crypto payment transactions decreases, Terra automatically buys more LUNA and burns the extra supply.
While LUNA currently has a market cap of approximately 380 million, burning LUNAs through the equilibrium method can destroy 58 million LUNAs simultaneously. With a total supply of less than one billion LUNA coins, Terra can manage its monetary policy with strong leverage but is still subject to varying degrees of supply fluctuations.
How does Terra work?
The Terra blockchain is built using the Cosmos SDK and uses the Proof of Stake consensus mechanism. Like some other Cosmos-based chains, Terra has 100 credentials, making it less decentralized than other Proof of Stake networks. A medium post from august notes that the Terra blockchain is capable of reaching hundreds of trades per second. Terra transactions are usually doing in six seconds and cost only a few cents.
Unlike decentralized coins, such as MAKER DAO’s DAI, Terra coins do not have collateral per se. To mint a stable Terra coin like the UST, you must burn the dollar equivalent of a native Terra LUNA coin. For example, if you wanted to hit 10 UST and the price of LUNA was $ 10, you only have to burn one LUNA.
The crazy thing is that you can burn stable Terra coins to buy the equivalent of LUNA. If you had 10 UST and the price of LUNA was $ 5, you would receive UST 2 LUNA to burn it. This creates a clever financial incentive to ensure that Terra stable coins always retain their Fiat peg.
For example, imagine 1 LUNA costs $ 10, but a UST costs $ 50. LUNA holders can burn their LUNA and multiply UST and earn 50% profit. This increases the UST supply to $ 1. Conversely, if you have 10 UST and the UST price is only 50 cents. You can burn that UST to create a complete LUNA coin for yourself.
Because the market value of LUNAs is ten dollars. This is a double immediate return. The UST you burn reduces the UST supply, which puts the UST market at $ 1. Terra Creditors offer Oracle services to ensure accurate UST and LUNA market pricing for accurate conversions. We should note that these discrepancies redemption disputes rarely occur in practice. Because many people arbitraging between LUNA and Terra Stablecoin at any one time.
Also, a small portion of the LUNA used to mint stable Terra coins has not been burned. Instead, it sent to Terra’s Community Treasury. LUNA owners decide how this budget spent and can also change various parameters of the Terra blockchain.
This delicate balance between the stable Terra and LUNA coins means the earth and the moon, which rely on each other to stabilize gravity and rotation. Now, this only scratches the surface of the Terra.
Terra Crypto Platforms: Accessibility and interoperability
The Terra ecosystem also has a development blockchain framework that allows developers to build their own protocols and dApps on top of the Terra network. The platform is also equipped with decentralized financial protocols (DeFi) which makes it amazing for investment purposes.
In addition to the services built into the Terra encryption ecosystem, the purpose of this protocol is to be fully compatible with other prominent Layer-1 blockchain solutions. This means that token assets and other data can be transferred to and from multiple blockchains simultaneously. As of April 2021, the Terra Stablecoin is available for the transfer of assets between the China Terra blockchain and the Ethereum and Solana blockchains, and there is more network integration in the future. Through Terra, developers can place dApp user databases in an unauthorized and untrustworthy manner on the Terra payment infrastructure. In addition, Terra Bridge is a web-based service that allows users to transfer Terra, Mirror Protocol, and Anchor Protocol assets back and forth between Ethereum and Binance Smart Chain (BSC).
To replace this development, Terra is using a smart contract development framework called CosmWasm. CosmWasm enables developers to build smart contracts using Rust, Go, or AssemblyScript programming languages. It can run over multiple blockchains through the Cosmos Inter-Blockchain Communication (IBC) protocol framework. Through the IBC and other specialized mechanisms, stablecoins and other assets of the Terra ecosystem can be used for many DeFi applications, including on-chain swaps, Oracle, lending, borrowing, staking, synthetic assets, and more.
Now when it comes to LUNA, the situation becomes a bit vague and Tokenics held a series of private sales for LUNA coins in early 2019 while there was no public ICO. The list of private equity investors includes Binance, Huobi, OKEx. Some sources point out that 210 million LUNA sold during these private sales. But others told that 385 million LUNA sold.
The private sale price of LUNA is about 5$ per coin. The private sale reportedly increased between $ 32 million and $ 72 million. The maximum dynamics of LUNA seems to be 1 billion, meaning that the network has been supplying if more than 1 billion LUNA coins are burned.
Now, it is not entirely clear how many LUNAs recorded in the cloud mining industry. 4% of LUNA production resources allocated to provide Genesis mining liquidity in exchanges. Basically, only 4% of LUNA’s primary commodities were available to people like you and me when you started trading. 10% of LUNA’s Genesis allocated to Terraform Laboratories. 20% allocated to employees and contributors. 20% allocated to the Terra Alliance. And the remaining 20% held in sustainable reserves.
LUNA cloud mining
These have different table coins to help keep Terra Fiat figures in the face of instability in the crypto market. All coins allocated to the Terraform Laboratory team and private investors will fully hand over by the spring of next year. And most of the rest will do in the coming months.
Due to the low cost of Terra blockchain LUNA, betting is not very profitable and has a huge return of 1.5% per year. Still, more than 30% of LUNAs are currently storing and each state LUNA has a 21-day opening period. Now, this means that if the price of LUNA starts to decline, any LUNA will not sell on the stock exchange any time soon. Accordingly, parabolic is a good word to describe LUNA price action since the beginning of 2021. Since January, it has stretched more than 10 times and continues to move.
Terra Price prediction (LUNA) 2021-2025
The only reassuring factor about the current market situation is that it has not discriminated against currencies. Most fiats as well as cryptocurrencies have faced the same unfortunate fate without any change. However, cryptocurrencies improved over a short period of time compared to other financing methods. According to historical data and analysis, even though the Terra price has shown a lot of stable performance over the past year, many market educators think the bull run is far away. While others argue differently.
Terra price chart
Terra Price prediction 2021
Since the mining event is before this year, there should be an uptrend that will drive the LUNA coin to definitely work for at least $ 22 and will certainly be a lucrative investment in the coming weeks. It should be a predictable attraction for traders and individual investors to invest in Terra.
Terra Price prediction 2022
The LUNA will continue to rise throughout 2021 and will continue to ride the news until 2022. Somewhere between 2021 and 2022, there is a price increase. That is bringing it to a higher point at $ 30 with sharp price fluctuations in between.
Terra Price prediction 2023
Terra crypto may fluctuate between $ 30 and $ 40. But it is not possible to say with certainty about the LUNA price prediction. Whether these two years will mark the golden age of this LUNA cryptocurrency. Significant changes may occur in industry scenarios, market positions, economic growth, policy restructuring. Or it may occur any other reason the coin hosts its performance. However, people know LUNA to be resistant and compatible. The global economy may also have an impact on Terra’s price prediction.
Terra Price prediction 2024
Some experts also predict that the Terra price prediction may also be effective during this period. It is earning the $50 mark in 2024 as a market maker. Region-specific changes also affect the price of LUNA. So to achieve your futuristic goals, one thing is that the stars are bright for this LUNA altcoin.
Terra Price prediction 2025
By revolutionizing the entire trading world, LUNA price is making its way into the ecosystem. Some predictions about the price of Terra in 2023 also indicate that it will enter the bull market by August 2025. It may even reach a high of $ 58. It seems that Terra is now competing for a record that shows its position in proving stability.
The future of the Terra Crypto ecosystem
Terra strives to become a world leader in stable e-commerce and DeFi service provider. Terra’s unique value proposition plays a role in accelerating blockchain in the Korean and Asian markets. While its main application has wide potential for global use. Terra discount model, instant settlement, and very low cost of purchasing products encourage traders and consumers to use this operating system. Terra has a Station wallet and the ability to transfer value cross-chain through the IBC solution with Cosmos. Also, Terra Bridge interoperability together produces an evolving blockchain ecosystem that continues to expand.